New districts -more money
New districts -more money

While the formation of new districts is in trouble, the state Government is hopeful that it would get additional funds for the news districts from the centre. The opposition on the other hand is creating all sorts of hurdles for some districts, especially in the districts where the congress leaders are powerful.

The creation of new districts from Dasara would financially benefit Telangana to the tune of nearly Rs 1,300 crore. The Centre had on July 20 issued a gazette notifying nine existing districts, barring Hyderabad, as backward areas and announced a grant of Rs 50 crore each towards Backward Regions Grant Fund amounting to a total of Rs 450 crore.

With the creation of new districts, the total number of backward districts in TS  will jump to 26 of the total 27 (except Hyderabad) and the state government can claim Rs 1,300 crore grant. The finance department has already started drafting proposals to claim BRGF grant for 26 backward districts after Dasara.

The government is hopeful of securing another Rs 5,000 crore for district-specific schemes being implemented by the Centre with the creation of new districts.

The government is learnt to have made a strategic move by not disturbing the existing Hyderabad district, classified as a developed district by the Centre, and confined itself to reorganising the other nine districts.

Any addition of revenue divisions and mandals in neighbouring districts like Ranga Reddy, Nalgonda, Mahbubnagar and Medak would have created technical problems for those districts to be eligible for the Centre’s grants.

Finance minister Etela Rajender said, “We have thoroughly studied the norms to claim Central grants under BRGF. It was found that all the 17 new districts qualify for these grants. While we got Rs 450 crore during the last two years, this would now increase to Rs 1,300 crore.”